Thursday, September 15, 2011

Strippers ruled Employees not Independent Contractors

In an unsurprising decision by the Northern District of Georgia, in Clincy v. The Onyx Club, nude dancers at The Onyx Club in Atlanta were recently ruled employees rather than independent contractors for FLSA purposes.  I have not been keeping track, but it seems like most of these decisions are going the same way.  In this case, the court dismissed the club's threshold argument that the economic realities test should not be applied because the dancers were only there on their own behalf and not there for the benefit of the club and so no putative employer-employee relationship could be established.  Having determined that the economic realities test was appropriate, the Court determined that five of the six factors favored an employee relationship and the sixth (length of relationship) was not well enough established to support either.  The factors the court looked at were:

(1) the nature and degree of the alleged employer's control as to the
manner in which the work is to be performed;
(2) the alleged employee's opportunity for profit or loss depending
upon his managerial skill;
(3) the alleged employee's investment in equipment or materials
required for his task, or his employment of workers;
(4) whether the service rendered requires a special skill;
(5) the degree of permanency and duration of the working
relationship;
(6) the extent to which the service rendered is an integral part of
the alleged employer's business.

Below is an animation that I put together to kind of summarize the arguments.  It does not depict any dancing or events from the case and is suitable for work.

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